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Why Allison Transmission (ALSN) is a Top Value Stock for the Long-Term

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

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Allison Transmission (ALSN)

Headquartered in Indianapolis, IN, Allison Transmission Holdings, Inc. is a manufacturer of fully-automatic transmissions for medium and heavy-duty commercial and heavy-tactical U.S. defense vehicles. In fact, the company is the largest producer of fully-automatic transmissions, holding the leading position in several niche markets. The firm also offers electric hybrid and fully electric propulsion systems.

ALSN boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Allison Transmission are trading at a forward earnings multiple of 7.7X, as well as a PEG Ratio of 1.1, a Price/Cash Flow ratio of 6.9X, and a Price/Sales ratio of 1.5X.

A company's earnings performance is important for value investors as well. For fiscal 2022, five analysts revised their earnings estimate higher in the last 60 days for ALSN, while the Zacks Consensus Estimate has increased $0.03 to $5.14 per share. ALSN also holds an average earnings surprise of 11.7%.

ALSN should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.


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Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
 
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